Construction Mutual Aid Association: "Ensan Act Amendment Must Be Withdrawn"

The Construction Mutual Aid Association visited the National Assembly on the 8th and submitted a joint petition opposing the amendment of the NSan Act on behalf of three construction-related associations.

The related industry is strongly opposing the amendment to the ‘Engineering Industry Promotion Act’ (hereinafter referred to as the EIPA), which grants special privileges to certain mutual aid associations.

On the 13th, the Construction Mutual Aid Association expressed its full opposition to the amendment of the EIPA. Earlier, on the 8th, the association visited the office of Assemblyman Shin Jeong-hoon of the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee (hereinafter referred to as the ITESME Committee) to explain the problems of the proposed amendment and submitted a petition jointly prepared by three construction-related mutual aid associations, including the Specialized Construction Mutual Aid Association and the Mechanical Equipment Construction Mutual Aid Association.

The amendment includes provisions allowing the Engineering Mutual Aid Association to handle guarantees and mutual aid services not only for engineering activities but also for manufacturing, installation, construction, supervision, and design performed by architects that include engineering activities. The three construction-related mutual aid associations, including the Construction Mutual Aid Association, and the construction industry are opposing this, stating, "This amendment is a special privilege that unilaterally expands the business scope of the Engineering Mutual Aid Association and is an attempt to legalize illegal business practices that have persisted for years."

They also argued that the amendment would intensify cutthroat competition among mutual aid associations and could deteriorate the overall financial soundness of the industry. The resulting high fees and low dividends to compensate would ultimately be passed on as burdens to the majority of small and medium-sized enterprises.

The association stated, "If guarantees covering the entire industry are allowed only for the Engineering Mutual Aid Association, it would completely undermine market order. If the amendment passes, about 73,000 small and medium construction companies will suffer, and there will be a flood of legislative proposals demanding comprehensive business permissions for other industries by various mutual aid associations."

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